Bitcoin (BTC) Price Prepares for Breakout as Dominance Surges Above 60%

Bitcoin rose to $73,600 on Tuesday, breaking above resistance around $70,000. Despite this rally, Caleb Franzen, founder of Cubic Analytics, believes Bitcoin is still preparing for a breakout.

Bitcoin price soared to $73,600 on Tuesday, finally breaching the resistance around $70,000. Despite this rally, Caleb Franzen, founder of Cubic Analytics, believes that BTC is still preparing for a breakout.

Speaking on the Thinking Crypto podcast, Franzen highlighted the recent BTC price action as encouraging in the short term and a sign of an upcoming bull run. He compared the lack of a Bitcoin breakout to the situation in the stock market, where the NASDAQ 100 is close to reaching new all-time highs.

“If both Bitcoin and the NASDAQ follow through and break out like we expect, I think we'll see a huge follow-through to the upside.”

According to Franzen, BTC is set to reach at least $175,000 in the current bull cycle. He expressed optimism in both the crypto and stock markets, where Bitcoin has outperformed the latter since the beginning of 2024. In fact, Franzen noted that only a few digital assets, such as Solana and Sui, have matched or exceeded Bitcoin’s gains this year.

It is also worth noting that Bitcoin’s dominance climbed above 60% this week for the first time since April 2021. This serves to highlight BTC's recovery as a dominant instrument among risk asset investors and reinforces its leadership in the cryptocurrency industry, especially when considering its relative haven status compared to altcoins.

Macro Indicators Support a Bitcoin Bull Market

Franzen went on to identify macro indicators that support a Bitcoin bull market, such as the bullish performance of mainstream assets. He noted that around 35% of the S&P 500 constituents have reported earnings and that, by and large, companies are exceeding expectations and raising guidance.

“This is a good sign for asset prices, which are a function of future cash flows and interest rates. We expect future cash flows to continue rising, which suggests that asset prices will increase.”

Meanwhile, Bitcoin price pulled back after the recent rally and was trading at $69,051 at the time of writing, reflecting a 6.65% decline over the past three days, according to data from TradingView.